Zerodha running some google ads to acquire customers. Rithvik share zerodha ads on google at tradingqna platform.
Zerodha’s main goal is to make better platform rather than advertising to acquire new customers.
Rithvik post ” I found this a little surprising the other day while searching for the Zerodha keyword on Google.
Given your stance on how the lifetime value of a customer in the discount broking space is less than the CAC, going full throttle on advertising just doesn’t make sense.
But I wanted to know from you whether that stance has been changing over the past few months given that your competition is advertising on your business’s keyword on Google “.
Nithin Kamath says ” We have many partners and customers who might be creating these ads, but we have never done any marketing and advertising ourselves ever.
We never pay partners or even customers any upfront money to put these ads as well, we just do a flat percentage share of the brokerage revenue generated. “
“If we spend money to acquire users, then the business is wired to constantly figure out ways to generate this cost in revenue from customers.
Most times, this isn’t right for the customer, like trying to get customers to borrow or trade more or trade riskier products. Sharing this from a Zconnect post from earlier this year. “
We think running ads on their own keyword to save customer is not bad idea. Motilal Oswal running google ads on Zerodha keyword to acquire zerodha’s potential customers.
Keyword is a marketing terms many marketing professionals use keywords to target their potential audience. Motilal oswal running ads on Zerodha keyword this is not illegal.
Zerodha Strategy To Stay At Top
Zerodha never spend money on acquiring customers they only focus on client retention. Once new customer come and open demat account then they try to prevent this client by providing best trading platform Kite.
Company post net profit of 2096 Crores in FY22 as compare to FY21 it was stood at 1122 Crores. Company not raise a single penny yet and still success.
Also Read :- Will Angel One Beat Zerodha in Future ?